Gold Technical Breakdown

Bernanke did not say anything hawkish at all today, yet the gold market is weaker this afternoon, off well over -1%. The main reason for the weakness continues to be further technical pressure. If you’ll notice below, the recent downward wedge pattern and subsequent breakdown in April resulted in a fairly strong resistance band in our current trading channel. Gold prices were unable to break above this resistance in early June, falling lower only to recover and retest it again today. The failure to break through again today does not bode well for near-term price activity.